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In a strategic move that underscores its commitment to global growth, Chilean mining supply leader ME Elecmetal has finalised the acquisition of PRIMA Foundry, a key player in South Africa’s mining industry. This landmark transaction not only represents ME Elecmetal’s first investment in the South African market but also highlights the company’s broader strategy of international expansion.

Andrew Bahlmann chief executive DLIThe acquisition was facilitated by mergers and acquisitions (M&A) advisory house DLI. Andrew Bahlmann, chief executive: DLI, describes the instrumental role played by DLI in facilitating this complex transaction: “We are immensely proud of our part in sealing this landmark deal. It demonstrates our extensive experience and expertise in the mining sector, involving the navigation of diverse cultural, linguistic, and strategic challenges, not to mention time-zone differences, all of which were expertly managed by our team led by Deal Executive Janine Wright.”

ME Elecmetal, which boasts a 107-year history and a presence in over 40 countries, operates seven metallurgical plants worldwide and serves a diverse global clientele. The acquisition of PRIMA Foundry, renowned for its engineering castings, aligns with ME Elecmetal's goal of enhancing its global production capabilities and offering comprehensive solutions to mining operations.

“This acquisition was not just a financial transaction; it was a strategic alignment of vision and values,” adds Wright. “From cultural compatibility to long-term vision alignment, we worked hard to ensure a perfect fit between the people and values of both companies. At DLI, we understand that when you’re dealing with businesses of this calibre, these factors are just as important as the numbers. We ensured that ME Elecmetal’s global growth strategy was seamlessly integrated with PRIMA’s established presence in the South African mining supply chain. Our success in this deal reflects DLI’s deep understanding of the mining industry and our ability to deliver exceptional results.”

The acquisition underscores DLI’s continued commitment to excellence in managing high-stakes deals within the mining sector. With numerous successful transactions under its belt, DLI has solidified a reputation as a leader in facilitating strategic mergers and acquisitions in this vital industry.

PRIMA Foundry, a family-owned business established in 1937, is celebrated for its engineering expertise and strong market presence in South Africa. Bahlmann notes that the acquisition is a promising sign of renewed appetite for investing in South Africa following the adoption of a more business-friendly attitude by the new government. “We extend our heartfelt congratulations to both ME Elecmetal and PRIMA Foundry. We eagerly anticipate the positive impact this partnership will have on the mining industry in South Africa and beyond.”

The newly formed entity, ME Elecmetal Prima, will continue to produce steel and manganese liners, supporting mining operations in South Africa and internationally. This expansion is anticipated to contribute to economic growth and job creation in the region. ME Elecmetal is focused on investing in technological innovations and alloy development to meet the evolving needs of the mining industry.

About Deal Leaders International

Deal Leaders International (DLI) is a specialist M&A advisory firm that offers strategic sell-side solutions to both owners and shareholders. We typically recommend companies with an annual profit of R15m+ (up to R300m) to attract good acquirers. However, we welcome businesses of all sizes as we can assist in developing a roadmap to saleability.

As the African alliance partner to the Pandea Global M&A Network, the company can unlock extensive local and international acquirer and investor networks. 

DLI Corporate and Advisory, headed up by Andrew Bahlmann, partners with large privately-owned, corporate listed and private equity-owned businesses to grow, extract value and ultimately exit through a successful equity transaction. Working with both South African, and internationally, owned business, the Corporate & Advisory business unit can offer very niche value proposition to its clients.

DLI’s Mid-Market business unit is headed up by Rick Grantham and leverages its core focus and competencies to work with privately-owned business. A professional and experienced team supports and guides the seller – and the seller only – along the intricate and challenging path of selling a business successfully.

Deal Leaders is currently managing several transactions in multiple industries, successfully attracting both local and international acquirers for its clients’ businesses. By focusing on businesses with turnovers up to R300 million per annum, the Deal Leaders International portfolio aligns to most local and international investment strategies.  

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